The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1887-03-23
SOME FALEAcTES IN REGARD TO THE
VALUE OF MONEY, KATIE OF ENTER-
EST. LABOR, LAND AND OTHER
CAPITAL.
BY aoBKRr <. roaIrssosl
No. T..
-
VALUE OF MONEY.


poses that nothing can have value as
money except gold and silver or promises
to pay these metals. Now what gives
value to anything 10 the world 1t Is an
exchange or effective demand for 1t to
supply some human need or desire. All
will admit that there is general demand
for something by the means OF which all
other things can be exchanged. Anything
which acceptably supplies this demand,
i. &. which answers satisfactorily the pur-
poses OF money, has just as real and true
o ground Of value as anything else under
the sun. Nor need II have value for other
purposes, which Is all that Is meant BY
the intrinsic value of gold. Government
currency, bread, coal, or title deeds,
which serve well only ono purpose, have
really just as sound and Intrinsic values
aS gold, wood or government bonds,
which are used Tor several purposes. All
admit that government paper currency
serves the purposes of home exchanges
better than gold and silver, Il, as some
say, it can be kept as uniform or stable 10
value. What Is the essential requisite OF
uniformity in value It is thatthe supply
Of a thing should keep exact pace with
the demand. Political economists know
that gold and silver belong TO that class
Of articles, which, in the language of the
science, have a scarcity value, and cannot,
without increased cost and value, keep
pace in supply with the manufactured
products that form great part Of modern
exchanges; hence In the long run prices
measured by them must contract. Be-
sides all know that the deficiency or in
aptitude of these metals for modern
money purposes Is forcing into use as
money vast and rapidly increasing
quantity of bank and private credits, or
promises to pay money. On the other
hand 1t cannot be denied that govern
ment currency can be increased 10 almost
exact ratio with the increase In exchanges;
and that even the slight errors in calcula.
ton can be corrected by scientifically pre-
pared tables of prices. Hence the real
question at issue is this: which is more
trustworthy and stable, the Constitutional
law (Art. /, Sec. VII, 81 and established
credit of a powerful government, or the
shifting credits and selfish interests Of
brokers, bankers and spectators Green
backs, even under the most unfavorable
conditions, as whom the government aimed
drst to initiate, aud then to contract them,
preserved according to Prof. Steele, Of
Wisconsin, for years more uniform pur-
chasing power than gold. At any rate
while not themselves subject to panics,
they checked the panic Of 1878, in bank
and private credits. How much better
might be the result II, as tho true friends
Of a government currency desire, the
government aimed to keep it of uniform
value?
The second fallacy on the value Of
money is akin TO the first, although lead.
ing practically to the opposite extreme Of
imitation. Some reason, not illogically,
that as gold and silver can rightfully form
the basis of circulation of much larger
amount, then other property should have
the power of forming basis Of circula
ton within at least the safe limits OF III
value The main flaw OF this reasoning
Is in the premises. But, besides, thess
reasoners forget that as money Except Ii
cases of hoarding), is only used In ex
changing, it cannot represent all property
but only that In actual sale or transit o.
ownership. To supply money to ex
change or transport in ownership oil pro
perty would be like supply ing ships, cars
&C., to move all property instead Of mere
ly that needing transportation. Boil
mediums would become nuisance from
their abundance and depreciation. More
over using commodities of any kind o
number to measure the value Of othe
commodities is relic Of that barbarisn
which used articles like stones, grains
barley corn, the hand, &c., to weigh ant
measure other things, instead of an alb
stract scientific government standard. =
Such an abstract scientific standard 0
value is just as feasible as scientific stand
ards of weights and measures. and ia
more necessary to high civilization :
While It might be convenient for differ
ent nations to have the same standards o
value and OF weights and measures yet |
is far more highly important that eacl
nation should have true and just stand
ards.
The value Of money then, whether mad
Of gold, silver, or paper, Is It's purchasing
power-increasin or decreasing with sucl
power. II prices are lower on the aver
age, either because of decrease of none,
or owing to improved and increased pro
duction, then money, being relative Il
prices alone, must be higher In value.
prices are higher owing to increase o
money or decrease in commodities thel
money must be lower relative TO prices
by government regulation of money
the only possible way BY which this re
suit can DO attained prices are kept OF
the average about the same, withou
either imitation or contraction, then, th
money which measures those prices, al
though, like the Bible and our Constitu
ton, It be made Of paper, has valu
more sure and steady than any commodi
~; since It Is always equal TO Axe
amount Of number Of commodities with
out being subject to tie violent fuctua
lions that each. not excepting gold, ur
dergoes.
--Gentiemen, you can get your cloths
cleaned and pressed At % Swan St, Q
good IS at any place In the country, non
excepted. 0verooats $3.50; Coats $1.0s
Prnfs rs; Vest 80. Ladies' goods 8